Accounting Multiple Choice Question – 9 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The balance on a firm’s debtors control account is £6,000.

The balance on its bad debts account is £300 and the balance on its provision for bad debts account is £285.

If a bad debt of £300, previously written off is subsequently recovered, the correct balance on the debtors control account in the nominal (general) ledger after recording the recovery is?

Select ONE answer:

  1. £5,415
  2. £5,700
  3. £6,000
  4. None of the above

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – The original £6,000 balance is net of the £300 bad debt. The provision for bad debts is not relevant to the control account. When the bad debt is recovered, the £300 originally written off is reinstated by debiting the control account and crediting the bad debts account. The entry to record the money received is to debit the bank account and credit the debtors control account.
  4. Not correct

 

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